Economics
Brazil’s Central Bank Worker Strike Doesn’t Bode Well for Its Inflation Fight
- Public servants demanding salary increases to offset inflation
- Wages are part of price indexation issue affecting Brazil
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The central bank that has launched the most aggressive monetary tightening campaign in the wake of the pandemic is in for a longer-than-expected battle against inflation as its own workers, together with others from Brazil’s public and private sectors, demand wage increases of as much as 26% to make up for losses in purchasing power.
Employees of Brazil’s central bank and the economy ministry, including the internal revenue system, have been on strike or staging work stoppages for three weeks now, delaying customs operations, budget plans and key statistical data. On Monday, a widely-watched economic survey with forecasts from more than 100 analysts went unpublished for a third consecutive week.